Small Businesses Are Cashing In from the Pokémon Go Craze. Here’s How You Can Too

In case for some reason you haven’t heard, Pokémon Go has become the most popular smartphone gaming application in history, soaring to over 20 million active users daily, in just the first week of its release.

This Nintendo application uses augmented reality, allowing users to discover new people and places in real time and in the real world to capture (virtual) mythical creatures and become a Pokémon master.

Pokémon Go uses players’ smartphones’ Global Positioning System (radio navigation systems that determines exact locations and times anywhere around the world) to virtually place users inside the game. This integration of the virtual and real worlds creates a gaming experience that is unprecedented.

Apart from all of the fun and games, small businesses have started to “cash in” from this new craze. Here’s how you can too:

Pokéspots and Poké Gyms are the new hotspots, both virtually and in reality.

Pokéspots are real-world hotspots, places of significant activity, where users meet up and collect Pokéballs, Potions, and Eggs — tools which help users on their quests to become Pokémon masters. Gyms have also become huge hotspots for this game.

These hotspots are also driving foot traffic to the lucky businesses located nearby. “The crowds have been wild,” raved a “PokéGo” player who scavenged around his neighborhood in search of Pokémon. “It has become a phenomenon [to] spark interest and opportunism, not only for players, but for the landmarks and attractions nearby.”

According to Microsoft CEO Satya Nadella who was interviewed recently on CNBC, “Pokémon could be gold for other companies including his [own].”

The world’s hottest smartphone app has created plenty of opportunity for businesses to draw in extra cash by joining the popular augmented reality game’s culture.

Many wonder how they can join this community and create their own Pokéspots. As of right now, Pokéspots are predetermined by Niantic Labs, but users may request new Pokéspot locations on Niantic’s support page. In the meantime, businesses are using “Lure Modules” to gain even greater attraction.

In addition to Pokéspots, there are ways to entice Pokémon Go players to come to specific locations by using “Lure Modules,” which, as the name suggests, lure users to particular spots by creating swarms of Pokémon for players to collect. One can purchase these for just a dollar in the “shop” section of the application and use it to attract players to certain Pokéstops for 30 minutes at a time.

L’inizio Pizza Bar, a restaurant in Queens, made headlines when they saw sales increase by a whopping 75% just by purchasing $10 worth of Lure Modules. “The [number] of people has been astonishing,” says Tom Lattanzio, owner of L’inizio Pizza Bar. “All day long, from afternoon to evening” players have visited their restaurant along their hunts for Pokémon creatures.

There are still more ways to engage in this cultural fad:

Pokémon Go players scavenging throughout their local neighborhoods in the scorching summer heat, chances are they’re going to need a bit of a break to fuel up and recharge; and what better place to recharge than a new “Poké-spot.” Many local shops have created happy hour promotions, food and beverage specials, and advertised to specific teams, such as, “Mystic,” “Valor” or “Instinct.” For all of the players running out of battery on their phones, local spots have created special charging stations for paying customers.

Businesses have already started offering Pokémon team promotions and discounts for their Poké-customers, and the turnout has been noteworthy. On July 14th, T-Mobile thanked its customers by providing a year’s worth of free, unlimited data for the Pokémon Go app. Other large companies including Lyft and Wendy’s have also mentioned offering special promotions exclusively for Pokémon Go players.

Today, smaller businesses have the chance to benefit from the growing “Pokéconomy,” and they have the ability to draw players straight to their doorsteps through the use of special promotions, discounts, and other Pokémon-related enticements.

For those that wish to stick to the “old fashioned” way of doing things, advertisements will soon be coming: Advertising agencies have been corresponding with Niantic, and the company has commented that they have future plans to accept sponsored partnerships. As mentioned previously, the essence of the game is based on a virtual reality and the players’ exact GPS location being provided to Niantic. Niantic can sell such information to advertising agencies and marketers, allowing these companies to use this data to study consumer trends.

It is extraordinary how Pokémon Go has become a global phenomenon, an outrage, and a major cash-cow. “We believe that this is only the beginning stage of the ‘Pokéconomy’ and it will expand exponentially,” says Ari Zoldan, CEO of Quantum Networks LLC. For now, this is a major opportunity for small businesses to benefit from the national Pokémon phenomenon, and it seems it will only continue to grow from here.

However, it is not all “fun and games.” Pokémon Go possesses real dangers in the real world. NBC 7 in San Diego reported two men falling off of a cliff while playing the game, and other reports include players getting into car accidents, trespassing, and losing necessary pedestrian focus in order to stay safe. That said, Pokémon Go estimates that it will grow exponentially in the coming months.